WHY THIS AGREEMENT IS REQUIRED

If you are planning to buy a home, one of the first steps today is signing a Buyer Agency Agreement. This is now required before a real estate agent can show you homes. This change is the result of recent industry updates designed to increase transparency and clearly define how agents work for and are compensated by buyers.

A Buyer Agency Agreement establishes the relationship between you and your agent. It outlines representation, expectations, and how compensation is handled—so there are no surprises later in the process.

WHAT CHANGED WITH COMMISSIONS

Historically, sellers typically paid both the listing agent and the buyer’s agent, and that compensation was advertised in the MLS. Buyers rarely had to think about how their agent was paid.

That structure has changed.

• Buyer agent compensation is no longer displayed in the MLS
• Compensation is fully negotiable between buyer, seller, and agents
• Sellers are not automatically responsible for paying the buyer’s agent

Because of these changes, a written agreement is now required so buyers understand exactly how their agent will be compensated before touring homes.

HOW WE HANDLE COMMISSION FOR OUR BUYERS

At Bay Realty Michigan, we structure our agreements to protect your interests and keep the process simple.

In most cases, we negotiate our commission directly within the purchase agreement and request that the seller pay it as part of the transaction. This allows you to have full representation while minimizing out-of-pocket costs.

If a seller is not offering compensation, we will discuss options with you upfront so you can make an informed decision before moving forward.

FLEXIBLE OPTIONS THAT FIT YOUR SITUATION

Buyer Agency Agreements are not one-size-fits-all. We keep them flexible and tailored to your comfort level.

• We can write the agreement for a single day or extend it for several months
• We can limit it to one specific property or cover your entire home search
• We adjust the terms based on your timeline and goals

You are not locked into a long-term agreement unless that is what you want.

WHAT THIS MEANS FOR YOU AS A BUYER

This change gives you more clarity and control.

• You know exactly who represents you
• You understand how your agent is compensated
• You have the ability to negotiate terms that work for you
• You receive full professional guidance from start to finish

Most importantly, it ensures your agent is working in your best interest under a clearly defined agreement.

FINAL THOUGHTS

The process has changed, but the goal remains the same—helping you find the right home while protecting your interests.

A Buyer Agency Agreement is simply a tool to create transparency, set expectations, and make sure you are fully represented before you ever walk through a door.

If you have questions or would like to see how we structure our agreements, we are happy to walk you through everything step by step.